CANarchy Adding Three Weavers Brewing to Collective

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FILED JULY 17, 2018

Dear Client:

Having just announced a stake in Dallas' Deep Ellum last month, craft brewery collective, CANarchy, has now also partnered with 5-year-old Three Weavers Brewing Company, one of the largest independent craft breweries in Los Angeles County, at roughly 12,000 barrels projected for this year. Terms were not disclosed.

"Our decision to join the CANarchy collective spans far beyond us as a single craft brewery," said Lynne Weaver, Three Weavers Founder and CEO. "It's about supporting our independence and continuing to champion the fight for all craft breweries with a similar goal."

COMMUNITY ANGLE. Led by founder Lynne Weaver and Brewmaster Alexandra Nowell, the Inglewood, California, brewer says it is centered on the passion of craft beer and the motivation of bringing friends and family together. "It's More Than Beer. It's Community" is their tagline, which "serves as our mission and our guide as we focus on our goal of becoming one of the preferred craft beer brands on the West Coast," per company.

STRONG TRENDS. Three Weavers has had strong year over year trends since its founding in 2013. Last year they experienced 94% depletion growth, hitting 7,000 bbls.

That robust growth helps explain why Lynne and company sought a partner.

WHY PARTNER? "It's hard to grow at that rate. Especially when you have the expectation to continue," Lynne told CBD. "And that comes along with a lot of investment: dollars, people, infrastructure … it was getting to a point in which the numbers were getting very big."

At the same time, while the craft market is obviously maturing, growing now at mid-single digits, Three Weavers has been sustaining close to triple-digit growth at times.

"That delta is huge. And you feel very exposed," she said. "I recognized that as we continue to grow, we needed to find … a collective who believes in what we believe in, but would allow us to move forward" the way they wanted to, while maintaining Brewers Association-type independence.

"And I'm not done; most folks think we sold. We didn't. We rolled 100% of our equity forward, because we're not done. We believe in what CANarchy is doing." She compared them to a sort of "mind bank" that members can call upon "when we're not 100% sure of what direction we're supposed to go."

CURRENT DISTRIBUTION. Current distribution focus is in LA County / So Cal (SD, OC, LA) with pulses into Japan, UK and Australia, Oskar Blues spokesperson, Chad Melis, told CBD. But it won't stop there: "CANarchy and the combined expertise of our craft brewers will provide the ideal platform to allow Three Weavers Brewing Company to scale up within a network of proven distribution and production success," Chad shared.

Obviously, CANarchy must have found their new partners' geography at least a little compelling. "With the addition of Three Weavers, the CANarchy portfolio expands its reach across the U.S., from the East Coast to the West Coast, with leading regional breweries in California, Colorado, Florida, Michigan, North Carolina, Texas, and Utah," they announced via press release.

We wondered how compelling the female leadership was, besides the geographic factor. CANarchy president Matt Fraser elaborated to CBD:

"First and foremost, CANarchy is looking for a strong brewery culture and high quality beer that resonates with beer drinkers and fits with CANarchy's culture and goals," he said.

THE FEMALE FACTOR. "Lynne's trailblazing leadership and Alexandra's award-winning beers has created a strong place in craft beer and their community. The opportunity for them to be the first female founder and brewmaster is an exciting addition to the CANarchy Collective story and growing list of resources.

CANARCHY NOW COAST TO COAST. "Geographically it's exciting as it extends the CANarchy Collective into a major metropolitan market and into a true Coast-to-Coast platform reaching from North Carolina to California consisting of 7 Brewery brands, 10 Brewery locations and 16 total locations including breweries, taprooms and restaurants."

Recall that the CANarchy collective as a whole produced 360,000 barrels last year. Now, with Deep Ellum in the mix and Three Weavers coming into the fold, the collective's volume is roughly 420,000 barrels.

More as more details come in.

BEER BRIEFS:

NEW BELGIUM SPONSORSHIP PRICE? We asked a New Belgium spokesperson yesterday, after news of their Red Rocks partnership broke, about the dollar value of said tie-up. While they aren't disclosing the exact amount, it's less than $1 million a year, over a period of three years, they told CBD.

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WHO IS ATTENDING THE DISTRIBUTOR PRODUCTIVITY SUMMIT?

Who is attending? Here's the list, and we're darn near sold out. http://beernet.com/pdfs/Distributor%20Productivity%20Summit%202018%20List%20of%20Attendees.pdf

We only have a few seats left (the room only holds 200). The DPS will be held at the beautiful La Cantera Resort in San Antonio on July 30 - 31, 2018.

Reserve your seat and learn more today at http://beernet.com/distributor_summit.php or call Jessica at 210-805-8006. See you in San Antonio.

Until tomorrow,

Jenn, Jordan, and Harry

"All things are difficult before they are easy."- Dr. Thomas Fuller

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